Thank you for your prompt reply.
You did just under 4,000 business miles last year and this equates to just under £1,800 (tax free) in mileage claim, if you were to charge the company for use of own car.
As the vehicle is your possession and not a company asset, any contribution towards it upfront or in the form of reimbursement would be deemed a payment to you that would be taxable, unless it is
- Repayment of director’s loan a/c
- Salary (taxed at source)
- Dividend out of taxed profits
The operating cost of a vehicle that is not a company asset would be made up of payments to you for business mileage claimed based on your mileage per annum.
I hope this is helpful and answers your question.
If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.